Bitcoin is currently experiencing a phase of miner capitulation, as reported by on-chain analyst Willy Woo. In a post to his 1.1 million followers on the social media platform X, Woo explains that the Bitcoin halving event in April is currently eliminating weak miners from the network. This event, occurring approximately every four years, reduces the Bitcoin reward for miners by half, thereby decreasing the new supply of BTC entering the market. Woo notes that weak miners tend to sell off their BTC as they exit the network, resulting in a subsequent rebound in Bitcoin’s price. However, before this rebound can occur, Woo emphasizes the need to eliminate speculative futures bets through liquidations.
Woo also shares a chart illustrating Bitcoin’s network flows, describing it as a visualization of capital movements within the Bitcoin store of value network over time. The chart shows units in billions of USD per day, with a gradual increase leading to a sudden surge.
At the time of writing, Bitcoin is trading at $66,681. The leading cryptocurrency by market cap has experienced a 5% decrease in the past 24 hours and a 5.5% decrease over the past seven days. Additionally, BTC is down over 9.5% from its all-time high of $73,738 set on March 14th.
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